'Britain will not bailout Greece' - Cameron

Cameron said he "absolutely" did not think the UK should contribute towards a possible €12 billion package for the ailing eurozone country.

He would be taking that message to fellow European Union leaders when they gather in Brussels later this week, he added.

The Prime Minister was speaking at a conference for chief executives organised by The Times newspaper in London.

Asked whether Britain could afford to help the bailout, Cameron said: "I absolutely don't believe we should.

"I don't believe that we will and I shall be fighting very hard to achieve that at the European Council this week."

EU finance ministers are refusing to hand the Greek government a second bailout package of 12 billion euro unless it agrees to implement a €28 billion set of austerity measures which include tax increases and massive spending cuts.

Finance ministers meeting in Luxembourg put off until July 3 a final decision on the loan instalment, without which Athens would be forced to default on its debts.

Downing Street has said Britain has not been asked to contribute towards the latest bailout, which is expected to involve only the 17 members of the eurozone.

The crisis in Greece has prompted forecasts of the European single currency's demise, with former foreign secretary Jack Straw warning that the euro "cannot last".

He urged ministers to prepare Britain for "alternatives" to the European single currency.

Straw told the Commons that the UK's potential exposure to Greek debt, including of private banks, totalled GBP8 billion.

The Government needed to recognise the "mood change" in Europe, with former europhiles "contemplating the end of the euro as we know it", he said.

"What the Government should do, instead of sheltering behind the complacent language, weasel words: it's not appropriate, we shouldn't speculate, (is) recognise that this eurozone cannot last and it's the responsibility of this British government to be open with the British people now about the alternative prospects.

"If this euro in its current form is going to collapse, is it not better that it happens quickly rather than a slow death?"

Deputy Prime Minister Nick Clegg rebuked the former minister, saying that "predictions of catastrophe" in the eurozone were not in Britain's interests.